Texas Reverse Mortgage Loan, Top 3 Questions!
We get many question about Texas Reverse Mortgages.
Here is the Top 3:
- 1. Can I get a lot of money? The Federal Housing Authority uses a formula to determine how much money you can get for your home if you take out a Home Equity Conversion Mortgage (HECM). This formula includes factors like your age and the value of the property. So, yes you can get a lot of money with a Texas reverse mortgage!
- 2. Can I lose my home and be put out on the street? If you take out a Texas reverse mortgage, you can live in your home for as long as you like. The lender cannot take your home to recover the debt. Even if the debt exceeds the value of the home, you will still receive payments. If you keep up the condition of the home, maintain proper insurance, and pay all the taxes due in a timely manner, there is no reason for anyone to take your home. If you take out an HECM reverse mortgage, the FHA Insurance and HUD guarantees all your payments.
- 3. Will there be anything left to leave to my children or other family? The reverse mortgage loan becomes due when you stop using your home as your primary residence. If you decide to move, you can sell the house, pay back the loan and keep what is left over. If you pass away, the reverse mortgage lender is only due what is outstanding on the loan. If the house appreciates in value and the balance of the loan gets settled with money left over, then that money goes to your heirs. In addition, a Texas reverse mortgage is known as a "non-recourse" loan; that is, the reverse mortgage lender has no recourse to any of your other assets if the debt exceeds the value of your home. This leaves any other assets you have safe for your heirs.
More Texas Reverse Mortgage Information:
Texas Reverse Mortgage Loan, Top 3 Questions | Ways to Get Paid on Your Texas Reverse Mortgage | Texas Reverse Mortgage Loan Qualifications and Information | Features of a Texas Reverse Mortgage | Termination of Texas Reverse Mortgages